Pubdate: Wed, 2 Sep 1999 Source: Reuters Copyright: 1999 Reuters Limited. AMERICAS REACH AGREEMENT ON ANTI-DRUG EFFORT OTTAWA, (Reuters) - The Organization of American States agreed Thursday to a new report card system to identify and sanction the worst offenders in the illicit drug trade in the hemisphere. The new evaluation mechanism, finalized at a three-day meeting of anti-drug experts from the 34-member organization, effectively rejects the U.S. process of unilaterally blacklisting countries it deems too lax on drugs. Instead, the group will together look at each government's efforts to deal with the drug problem, and grade each country. The reports will also identify obstacles faced by countries and areas where help could be offered. The 16-year-old U.S. decertification process, criticized by Canada as ineffective finger-pointing, blacklists a country if Washington decides it is not doing enough to fight the drug trade. The United States then orders a halt to all bilateral assistance except for anti-drug efforts and humanitarian aid, and tries to prevent international agencies from giving loans to the offending country. "Canada has been a leader in pushing for increased co-operation through the hemisphere, emphasizing that a balanced approach to the drug problem -- one that stresses both supply reduction and demand reduction -- is crucial," Solicitor General Lawrence MacAulay said in a statement. Canada was embarrassed by a published report last month that U.S. officials had considered adding Canada to the annual list of major drug-producing and trafficking countries because it was not doing enough in the war on drugs. Washington reportedly left Canada off the list after complaints from senior Canadian officials. South American countries have complained that the U.S. process unfairly labels them as drug-producing countries without recognizing the social problems their countries are facing with drug addiction. The OAS Thursday pledged to measure the human, social and economic costs of nations' drug problems as part of its evaluations. The annual evaluations will start next year, with the first report cards issued in 2001. REUTERS - --- MAP posted-by: Jo-D